By Anora Mahmudova and Sara Sjolin, MarketWatch

Bullard says markets could have a new "tantrum"

NEW YORK (MarketWatch) -- U.S. stocks erased modest gains in the last 15 minutes of trading, finishing slightly lower on Monday.

Some market watchers attributed recent volatility in stocks to fluctuations in the currency markets, where the surge in the dollar raised concerns over profitability of multinational corporations. Monday's pullback in the dollar failed to provide support to stocks, however.

Despite the reversal, Monday's moves were fairly tepid compared with volatile swings last week, when the Federal Reserve signaled that the first interest-rate hikes (http://www.marketwatch.com/story/fed-takes-step-to-rate-hike-but-scales-back-intended-pace-2015-03-18) may come as soon as June.

Even though the central bank dropped its reference to being "patient", markets took the statement and the following news conference by Chairwoman Janet Yellen as dovish.

The S&P 500 (SPX) ended the session 3.68 points, or 0.2%, lower at 2,104.42, with four out of its main 10 sectors closing lower.

The Dow Jones Industrial Average (DJI) finished 11.61 points, or 0.1%, lower at 18,116.04, with more than half of its 30 components ending with losses.

The Nasdaq Composite (RIXF) closed 15.44 points, or 0.3%, lower at 5,010.97, as biotechnology stocks led the losses. The iShares Nasdaq Biotechnology ETF (IBB) fell 2.3%.

Peter Cardillo, chief market economist at Rockwell Global Capital, said that the market felt the pressure from transportation stocks, which sold off on Monday.

Indeed, the Dow Transportation Average (DJT) dropped 2% on Monday, led by a 8% drop in Kansas City Southern (KSU).

"Markets are technically driven at this point and a selloff in the transportation average may have pushed stocks lower," Cardillo said.

Arthur Hogan, chief market strategist at Wunderlich Securities, said the Fed put the markets on data watch.

"Investors will be focusing on economic data, especially the PCE component of the fourth-quarter GDP revision this week, as the Fed made it clear it would remain flexible and data-dependent," Hogan said.

"Markets are also using the break in the dollar surge as a spring board. While ultimately stronger dollar is good for the U.S. economy, a sharp gain in a short time had been disruptive for markets," Hogan added.

Fed speakers: Monetary policy still was in the spotlight, with St. Louis Federal Reserve President James Bullard telling CNBC Monday that the dovish statement from last week may have misplaced investor expectations about the first rate hike. Bullard also said the market could throw another "tantrum" (http://www.cnbc.com/id/102525889) with the Fed possibly raising rates later this year.

Cleveland Fed President Loretta Mester was speaking in Paris Monday morning. Mester, who isn't a voting member of the policy-setting committee this year, said the central bank can do more (http://blogs.wsj.com/economics/2015/03/23/feds-mester-fed-needs-further-refinements-of-forward-guidance/?KEYWORDS=mester) at helping guide the market in terms of rate moves.

Fed Vice Chair Stanley Fischer speaking at the Economic Club of New York (http://www.marketwatch.com/story/feds-fischer-voices-no-complaints-about-euro-weakness-2015-03-23), said rate hike is likely to be warranted this year.

Economic data: Monday's sole economic report was on sales of existing homes, which rose 1.2% in February to a seasonally adjusted annual rate of 4.88 million, the National Association of Realtors reported Monday. The gain was below expectations. The median sales price of used homes hit $202,600 in February, up 7.5% from the year-earlier period.

Stocks to watch: Shares of Carnival Corp.(CCL) fell 1.8% after Deutsche Bank cut the cruise-operator to hold from buy.

Tenet Healthcare Corp.(THC) gained 4.9% on news the company is creating a $2.6 billion joint venture (http://www.marketwatch.com/story/tenet-healthcare-to-create-26-bln-joint-venture-with-united-surgical-2015-03-23) with United Surgical Partners International.

Gilead Sciences Inc.(GILD) dropped 2% after the drug maker on Friday warned health-care providers (http://www.bloomberg.com/news/articles/2015-03-21/gilead-warns-after-hepatitis-patient-on-heart-drug-dies) that nine patients taking its hepatitis C drugs Harvoni or Sovaldi along with the heart treatment amiodarone developed abnormally slow heart beats and one died of a heart attack, according to Bloomberg.

Shares of Kansas City Southern (KSU) dropped 8%, after the railroad company lowered its 2015 sales growth outlook.

For more on notable movers read Movers & Shakers column (http://www.marketwatch.com/story/tenet-climbs-after-deal-news-carnival-slides-on-broker-downgrade-2015-03-23).

Other markets: Weaker dollar (DXY) pushed up commodity prices on Monday. Crude oil (CLK5) prices settled at the highest level in almost two weeks, adding 1.9% to $47.45 a barrel.

Gold futures (GCK5) finished higher for a fourth straight session, settling 0.3% higher at $1,187.70.

Also read: Gold and oil have a complicated relationship with the dollar (http://www.marketwatch.com/story/gold-and-oil-have-a-complicated-relationship-with-the-dollar-2015-03-23)

Stock markets in Europe (http://www.marketwatch.com/storyno-meta-for-guid) declined, with investors waiting for the latest developments in Greece's reform negotiations. Greek Prime Minister Alexis Tsipras is scheduled to meet German Chancellor Angela Merkel later on Monday.

Asian markets closed mostly higher (http://www.marketwatch.com/storyno-meta-for-guid).

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